SawStop technology mandatory?

[LCHIEN]

He was asking 8% firm on royalties. This is high unless he was not only going to let them use the technology, but also give them the cartridges. I'm sure that wasn't the case though. 8% firm per unit just to use his design is too high.

8% of what basis? The retail (MSRP) price of the saw? or the cost of the cartridges? or the adjusted net income (profit) on the saw?

My guess would be the cost of the cartridge, the others would be too variable by model and make. OTOH if he's charging royalty by cartridge, why not just charge a fixed price including royalty and hide the royalty amount.

If he wanted 8% of the MSRP of the saw that would be highway robbery, IMHO.

[jziegler]

8% of what basis? The retail (MSRP) price of the saw? or the cost of the cartridges? or the adjusted net income (profit) on the saw?

My guess would be the cost of the cartridge, the others would be too variable by model and make. OTOH if he's charging royalty by cartridge, why not just charge a fixed price including royalty and hide the royalty amount.

If he wanted 8% of the MSRP of the saw that would be highway robbery, IMHO.

I read an article about this some time ago, and the impression that I got was that it was 8% of MSRP on the saw. No wonder the manufacturers didn't want to buy it.

I'll certainly agree that this would be a very important feature for schools and industrial shops. As far a home use, if cheap enough I would get it, but I'm certainly not going to pay their big bucks to buy a new saw.

Jim

[Stytooner]

http://www.designnews.com/CA6360672.html

Specifically this paragraph about a third of the way down.

"The power tool industry, however, has a very different view of the subject. Representatives cite a plethora of technical problems with SawStop technology, including too many “false positives” or “nuisance trips,” cost of replacement cartridges after the brake fires, and difficulties cutting conductive materials, such as moist wood. Moreover, they say, Gass is asking for an 8 percent royalty on each saw sold, a figure they describe as ridiculous. "

[LarryG]

I'd heard that 8% figure before, but was unsure what it applied to. I read that the initial estimated cost of the SawStop device is $150 per unit, with a reduction to around $100 per unit expected when ramped up to full production. I guess I'd always assumed that the 8% was based on some agreed or stipulated cost of the device itself, only.

But he's wanting 8% of the total cost of the saw, then "ridiculous" doesn't even begin to cover it. No wonder the mfrs showed him the door.

[bigsteel15]

I'll certainly agree that this would be a very important feature for schools and industrial shops.
Jim

I noticed last time I took a course at Lee Valley that they are replacing their shop saw with a SAW STOP.
They use these machines for teaching their courses.
Great idea to mandate for schools, optional for cabinet shops, etc.
I think you might see OH&S impliment something for those cases.